Paysafe Limited reported its third‑quarter 2025 financial results, posting a 2% year‑over‑year revenue increase to $433.8 million and a 6% organic growth rate. Adjusted EBITDA rose 7% to $123.5 million, but the company missed consensus earnings estimates, reporting an adjusted EPS of $0.70 versus the $0.73 forecast.
Revenue growth was driven by a 7% rise in Merchant Solutions and a 4% rise in Digital Wallets, offset by a decline in a disposed business line. The 2% overall increase reflects the impact of the one‑time disposal and modest currency gains.
Margin compression is evident as adjusted EBITDA margins are expected to fall from 29% in Q3 to roughly 23% in Q4. Management cited the outperformance of lower‑margin products and sales channels, combined with higher cost inflation and investment in new wallet initiatives, as the primary drivers of the decline.
In response to the headwinds, Paysafe cut its full‑year 2025 guidance. EPS guidance was lowered to $1.83–$1.88 per share from the prior $2.21–$2.51 range, and revenue guidance was trimmed to $1.70–$1.71 billion from $1.71–$1.73 billion. The adjustments reflect concerns about the pace of wallet platform rollouts and the mix shift toward lower‑margin offerings.
Investors reacted negatively to the earnings miss and guidance cut, citing the company's lower‑margin mix and the delayed wallet initiatives as key concerns. CEO Bruce Lowthers noted that the updated outlook reflects a longer timeline for new product growth and a continued focus on high‑margin opportunities.
The quarter also saw a net loss of $87.7 million, largely driven by an $81.2 million tax charge related to the One Big Beautiful Bill Act. Despite the disappointing results, the board authorized an additional $70 million for its share repurchase program, underscoring confidence in the long‑term value of the business.
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